Financial Performance - Net sales for the three months ended July 31, 2024, were $280,345, a decrease of 6.3% compared to $299,640 for the same period in 2023[4] - Operating income for the three months ended July 31, 2024, was $23,442, down 37.4% from $37,463 in the prior year[4] - Net income for the three months ended July 31, 2024, was $25,350, a decline of 20.0% compared to $31,698 for the same period in 2023[4] - Basic earnings per share for the three months ended July 31, 2024, were $0.77, down from $0.97 in the same period last year, representing a decrease of 20.6%[4] - Comprehensive income for the three months ended July 31, 2024, was $29,850, compared to $34,776 for the same period in 2023, indicating a decrease of 14.1%[6] - Net income for the nine months ended July 31, 2024, was $46,976, a decrease of 14.5% compared to $55,119 in the same period of 2023[8] - Operating income for the nine months ended July 31, 2024, was $51,996 million, down from $71,202 million in the same period of 2023, representing a decline of 26.9%[85] - Net sales for the three months ended July 31, 2024, decreased by $19.3 million, or 6%, compared to the same period in 2023, primarily due to a decrease in volumes driven by weaker consumer confidence[110] - Operating income for the same period fell to $23.4 million, a decrease of $14.0 million, or 37%, compared to $37.5 million in the prior year[110] Assets and Liabilities - Total current assets increased to $301,399 as of July 31, 2024, compared to $273,600 as of October 31, 2023, reflecting a growth of 10.1%[3] - Total assets rose to $872,450 as of July 31, 2024, compared to $831,143 as of October 31, 2023, marking an increase of 4.9%[3] - Total liabilities decreased to $278,314 as of July 31, 2024, down from $285,589 as of October 31, 2023, a reduction of 2.5%[3] - Total stockholders' equity increased to $594,136 as of July 31, 2024, up from $525,955 a year earlier, representing a growth of 12.9%[12] - Long-term debt decreased to $51,406 as of July 31, 2024, down from $66,435 on October 31, 2023, a reduction of 22.7%[44] - Total lease liabilities rose to $120,541 as of July 31, 2024, compared to $102,570 on October 31, 2023, marking an 17.5% increase[33] Cash Flow - Cash provided by operating activities decreased to $83,333 from $102,559, reflecting a decline of 18.7%[8] - Cash and cash equivalents increased to $93,966 as of July 31, 2024, compared to $58,474 as of October 31, 2023, reflecting a significant increase of 60.7%[3] - Cash provided by operating activities for the nine months ended July 31, 2024, was $83,333, compared to $102,559 for the same period in 2023, representing a decrease of 18.7%[8] - Cash used for investing activities decreased by $90.2 million for the nine months ended July 31, 2024, with no business acquisitions compared to $91.3 million in the prior year[137] Sales and Market Performance - North American Fenestration sales in the U.S. decreased to $131.4 million from $138.1 million year-over-year, representing a decline of 5.0%[23] - International Fenestration sales decreased to $6.9 million from $8.5 million, a decline of 18.6% year-over-year[23] - The company reported a total of $478.0 million in North American sales for the nine months ended July 31, 2024, down from $487.0 million in the prior year[23] - The North American Fenestration segment reported net sales of $170.3 million, down $6.8 million, or 4%, primarily due to an $8.8 million decrease in volumes[111] Acquisitions and Investments - The company completed the acquisition of Tyman plc on August 1, 2024, which is expected to enhance market presence and operational capabilities[45] - The company acquired LMI Custom Mixing for $91.3 million in cash on November 1, 2022, enhancing its polymer mixing and rubber compound production capabilities[27] - The Tyman Acquisition is expected to create a leading comprehensive solutions provider in the building products industry, although integration costs and potential delays may impact financial results[157] Expenses and Cost Management - Selling, general, and administrative expenses increased by $6.0 million, or 20%, to $36.5 million for the three months ended July 31, 2024[110] - Cost of sales decreased by $4.8 million, or 4%, for the three months ended July 31, 2024, mainly due to a decrease in volumes, partially offset by pricing and inflation of raw materials[112] - Selling, general and administrative expenses increased by $2.7 million, or 19%, for the three months ended July 31, 2024, primarily due to increases in labor costs and professional fees[112] Foreign Currency and Taxation - The company reported a foreign currency translation gain of $4,500 for the three months ended July 31, 2024, compared to $3,078 in the same period last year, an increase of 46.2%[6] - The estimated annual effective tax rate for the nine months ended July 31, 2024, was 21.2%, an increase from 18.2% in 2023[53] - The effective income tax rate increased to 20.9% for the three months ended July 31, 2024, compared to 11.5% for the same period in 2023, primarily due to an increase in non-deductible permanent differences[121] Stock and Compensation - The total compensation expense related to stock-based awards for the nine months ended July 31, 2024, was $5.346 million, down from $7.635 million in the prior year[75] - The company reported stock-based compensation expense of $583 for the nine months ended January 31, 2024[10] - The total weighted-average grant-date fair value of restricted stock awards that vested during the nine months ended July 31, 2024, was $1.4 million, compared to $1.0 million in 2023[64] Strategic Focus - The company continues to evaluate business acquisitions to expand its fenestration and cabinet component footprint and enhance product offerings[99] - The ongoing geopolitical tensions and military conflicts may lead to market disruptions and increased commodity prices, impacting the company's operations[103] - The company has begun implementing additional programs for raw materials pricing to reduce exposure to material cost fluctuations, although some are subject to timing lags[152]

Core Viewpoint - Quanex Building Products Corporation (NX) reported better-than-expected third-quarter results for fiscal 2024, with adjusted earnings and net sales exceeding the Zacks Consensus Estimate, although both metrics declined year-over-year [1][4]. Financial Performance - Adjusted earnings were 73 cents per share, surpassing the consensus estimate of 70 cents by 4.3%, but down from 97 cents in the prior-year quarter [4]. - Net sales reached $280.3 million, slightly above the consensus mark of $278 million by 0.8%, but a decline of 6.4% from the previous year [4]. - Gross profit decreased to $70.9 million from $78.6 million year-over-year, with a consolidated gross margin contraction of 90 basis points to 25.3% [8]. Segment Analysis - North American Fenestration segment saw net sales decline by 3.9% to $170.3 million, with gross profit margin contracting to 23.5% [5]. - European Fenestration segment's net sales fell 10.8% to $59.6 million, with gross profit margin down to 38.1% [6]. - North American Cabinet Components segment reported a decline in net sales to $51.4 million from $55.4 million, with gross profit margin contracting to 16.6% [6][7]. Operational Highlights - Selling and administrative expenses increased to $36.5 million from $30.5 million in the prior-year quarter [8]. - Adjusted EBITDA was $42 million, down 13.4% year-over-year, with adjusted EBITDA margin declining to 15% from 16.2% [8]. Financial Position - As of July 31, 2024, cash and cash equivalents were $94 million, up from $58.5 million at the end of fiscal 2023, while long-term debt decreased to $51.4 million from $66.4 million [9]. - Net cash provided by operating activities for the first nine months of fiscal 2024 was $83.3 million, compared to $102.6 million a year ago [10]. Future Outlook - NX expects consolidated net sales for fiscal 2024 to range between $1.275 billion and $1.285 billion, compared to $1,130.6 million in the previous year [11]. - Adjusted EBITDA is anticipated to be between $171 million and $176 million, up from $159.6 million reported in fiscal 2023 [11].

Results point to better times ahead. Quanex Building Products (NX 18.66%) topped Wall Street expectations for the quarter and raised its fullyear outlook, predicting big things from its recently closed acquisition. Wall Street reacted favorably to the news, sending Quanex shares up 20% as of 10:30 a.m. ET. Solid quarter, better guidance Quanex manufactures a wide range of building materials, including windows, doors, vinyl fencing, refrigeration, and cabinetry. Last month, the company closed a $1.1 billion ...

Quanex Building Products (NX) came out with quarterly earnings of $0.73 per share, beating the Zacks Consensus Estimate of $0.70 per share. This compares to earnings of $0.97 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 4.29%. A quarter ago, it was expected that this housing materials maker would post earnings of $0.53 per share when it actually produced earnings of $0.66, delivering a surprise of 24.53%. Over the last fou ...

Results Consistent with Expectations Transformative Tyman Acquisition Closed August 1, 2024 Acquisition Integration Underway HOUSTON, Sept. 05, 2024 (GLOBE NEWSWIRE) -- Quanex Building Products Corporation (NYSE:NX) ("Quanex" or the "Company") today announced its results for the three months ended July 31, 2024. The Company reported the following selected financial results: | --- | --- | --- | --- | --- | |----------------------------------------|--------|--------------------------------------|--------|---- ...

Quanex Building Products Corporation (NX) is scheduled to report third-quarter fiscal 2024 results on Sept. 5, after the closing bell. In the last reported quarter, the company's earnings beat the Zacks Consensus Estimate by 24.5% and were flat year over year. Net sales missed the consensus mark by 1% and decreased 2.7% year over year. The Trend in Estimate Revision For the quarter to be reported, the Zacks Consensus Estimate for earnings per share (EPS) has remained stable at 70 cents in the past 60 days. ...

HOUSTON, TEXAS, Aug. 12, 2024 (GLOBE NEWSWIRE) -- August 12, 2024 – Quanex Building Products Corporation (NYSE: NX) ("Quanex" or the "Company") today announced the appointment of Manish H. Shah and Amit Singhi to its Board of Directors effective August 12, 2024. George Wilson, President and Chief Executive Officer, commented, "Manish and Amit are both proven, forward-thinking leaders, and we're looking forward to the insights they'll bring to Quanex as we continuously strengthen our focus on profitable grow ...

Combination Creates a Comprehensive Solutions Provider to Building Products OEMs Acquisition Enhances Scale, Global Reach and Product Offering HOUSTON, Aug. 01, 2024 (GLOBE NEWSWIRE) -- Quanex Building Products Corporation (NYSE: NX) ("Quanex" or the "Company") today announced that it has closed on its acquisition of Tyman plc ("Tyman"), creating a comprehensive solutions provider in the building products industry. "We are excited to welcome the Tyman team. This transaction accelerates our growth and value ...

Combination Creates a Comprehensive Solutions Provider to Building Products OEMs Acquisition Enhances Scale, Global Reach and Product Offering HOUSTON, Aug. 01, 2024 (GLOBE NEWSWIRE) -- Quanex Building Products Corporation (NYSE: NX) ("Quanex" or the "Company") today announced that it has closed on its acquisition of Tyman plc ("Tyman"), creating a comprehensive solutions provider in the building products industry. "We are excited to welcome the Tyman team. This transaction accelerates our growth and value ...

HOUSTON, July 12, 2024 (GLOBE NEWSWIRE) -- Quanex Building Products Corporation (NYSE:NX) ("Quanex" or the "Company") today announced that shareholders of both Quanex and Tyman plc (LSE:TYMN) ("Tyman") have approved Quanex's proposed acquisition of Tyman. Tyman shareholders will receive either a mix of 240.0 pence in cash and 0.05715 shares of Quanex common stock for each Tyman share, or a Capped All-Share Alternative of 0.14288 shares of Quanex common stock per Tyman share. The Capped All-Share Alternative ...